PrimeAg strikes final sale agreement

RURAL property owner PrimeAg has struck a $76 million deal to sell its remaining assets and shares, and de-list from the sharemarket.

The owner of farms Australia will sell the last of its shares for $45 million to Australian Food and Fibre, a private agricultural company based in Queensland.

PrimeAg has also agreed to sell a property at Emerald in Queensland to a group affiliated with US investment firm Global Endowment Management.

The deals follow a decision by the company in early 2013 to sell all of its assets and distribute the proceeds to its shareholders.

PrimeAg has already sold off properties to US-based farm investor TIAA-CREF Global Agriculture.

On Monday it said it expected to generate between $374 million and $382 million for shareholders from all of its share and asset sales, about 10 per cent less than the recognised value of its assets as of June 30, 2012.

The proposed final sales, which will need shareholder approval, were the best offers received and there were no were alternative bids, PrimeAg said.

If it gets the approval, the company will be fully privatised by November this year.

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